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Kentucky AG secures $398,000 settlement from Michigan firm 2,200 small Kentucky businesses receive refund after purchasing scam services from Michigan company alleged to have sold scam services From Kentucky Press News Service Original KPNS story FRANKFORT - (Fri 13 Apr 2018) - Attorney General Andy Beshear announced in a news release Friday that nearly 2,200 Kentucky small businesses can get money back from a Michigan-based company alleged to have sold scam services. Beshear's more than $398,000 settlement resolves alleged violations of the Kentucky Consumer Protection Act by Michigan-based The Mandatory Poster Company Inc., which also does business as Corporate Records Service. Corporate Records Service was accused of sending Kentucky businesses an official-looking "Annual Minutes Form" mailer offering to provide "corporate minutes" work to business owners. The Attorney General's Office alleged the form created the impression that the mailer was sent by a government entity or that the purchase of the annual minutes was required by Kentucky law. As part of the agreement, Corporate Records Service, agreed to offer a full, $125 refund to nearly 2,200 businesses that purchased the minutes service and pay a penalty, which includes providing more than $93,000 to Kentucky's general fund. "My office takes action to protect Kentucky families, including those who own and operate our critically important small-businesses from scams and fraud," Beshear said in the news release. "Making sure our business community was able to recover their money was my office's top priority in bringing this case." Beshear filed a lawsuit against Corporate Records Service in 2016 after the Attorney General's office received numerous complaints from state business owners saying that the company was mailing misleading, deceptive or fraudulent solicitations. Beshear said small businesses that purchased the annual minutes service should expect a letter from his office soon, which details the refund and how to claim it. To receive the refunds, consumers will need to sign a release and return the release to the Attorney General's Office of Consumer Protection within 45 days from the date the letter is sent. In February, Beshear reached a settlement with TK Holdings, Inc., the U.S. subsidiary of Takata, over allegations that the company violated Kentucky's Consumer Protection Act by concealing safety issues related to defective airbags. The multistate settlement affected approximately 480,000 cars in Kentucky. This story was posted on 2018-04-13 16:11:51
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